Commissioner for the South African Revenue Services v Khagiso Afrika Holdings (PTY) LTD and Others (49048/2021)
Commissioner for the South African Revenue Services v Khagiso Afrika Holdings (PTY) LTD and Others (49048/2021) [2023] ZAGPPHC 36 (16 January 2023)
The court found that SARS had established the requirements for a final preservation order under section 163 of the Tax Administration Act. The evidence showed that SOA received substantial funds from Khagiso Afrika Holdings and failed to declare the corresponding output VAT, submitting a false VAT201 return. The pattern of immediate fund transfers among associated companies, including SOA, indicated a clear risk of asset dissipation. The court rejected the respondents' argument that SOA had no assets to preserve, noting that the systematic funneling of funds was designed to frustrate tax coll…
Source excerpt
- Tax Preservation Order
- Value Added Tax
- Asset Dissipation
- Tax Evasion
- Section 163 Taa
- Personal Liability